Attention, Lower Saxony! More than 130 municipalities are increasing property taxes!

Attention, Lower Saxony! More than 130 municipalities are increasing property taxes!

A wave of property tax increases is looming in Lower Saxony. Loud NDR Almost every seventh municipality is planning to increase the property tax rates this year. Given the constantly rising costs for schools, daycare centers, staff and roads, communities often have little choice if they want to secure their solvency.

Of the more than 130 municipalities that are planning increases, Schneverdingen is drawing attention with an increase of around 170 euros annually for properties of 500 m² and 120 m² of living space. This is particularly alarming as the municipalities' financial situation has been steadily deteriorating since 2020 and 2024 is considered particularly critical.

Financial distress of the municipalities

The cash loans of Lower Saxony's cities and municipalities reached an alarming sum of 2.45 billion euros last year. An example of the precarious situation is the Hinrich Wolff School in Bergen, whose new building has been postponed since 2019. A doubling of the city's debt would be necessary in order to realize the new building. Therefore, the only option left to close such financial gaps is to increase property and business taxes.

These fundamental changes are not without criticism. Many voices criticize the inadequate support from the state and federal governments. In order to improve the financial situation, experts from the Taxpayers' Association have suggested merging several municipalities as a way to save administrative costs.

The property tax reform and its effects

The effects of the property tax reform, which resulted from a ruling by the Federal Constitutional Court in 2018 and the property tax reform law of 2019, can also be felt in other federal states. In Berlin, for example, the new property tax is expected to generate revenue of 891.3 million euros in 2025, an increase of 4.5 million euros compared to the previous year, reports rbb24. However, there are fears here that the tax burden for many owners could increase significantly, which has already been criticized by representatives of the owners' association “Haus & Grund”.

The reform stipulates that around 36 million properties in Germany will have to be revalued by the end of 2024. This recalculation is intended to enable fairer tax consideration, with the assessment rate being determined by the municipalities themselves. However, there is uncertainty until the new property values ​​and tax figures are made available, as many municipalities have to adjust their assessment rates accordingly.

Tasks and digitalization

The upcoming reform also poses major challenges for administrations: the registration and valuation of properties is on the agenda. What matters here is the degree of digitalization of administrative work. Electronic process processing and digital file management are becoming crucial for modernizing the administrative organization. Loud BUP municipal advice The property tax reform can also be used as an opportunity to improve administrative structures.

Overall, it is clear that the rising property tax levies in Lower Saxony and the other federal states are often just a reaction to the municipalities' ongoing financial bottlenecks. It remains to be seen what long-term effects these measures will have on citizens and local politics.